Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 30 - Division of Motor Vehicles
Subchapter 20 - Dealer Licensing and Registration
Part 1 - Dealers, Manufacturers, and Rental Licenses
Section 280-RICR-30-20-1.7 - Administrative Policies - Motor Vehicle Dealers

1. Every dealer must fill out an application for a dealer's license on a form prescribed by the Department. Every applicant for a motor vehicle dealer's license must furnish with the application four photographs showing front view, right side view, left side views, and the rear view of the premises, except in case of renewal.

1. The Department must be notified within ten (10) days, in writing, on whatever forms the Department may require, if there is a change in members of a partnership or officers of a corporation or association licensed by the Department. If the location does not meet the minimum requirements, as amended then at least one (1) of the present owners, partners or corporate officers on record must remain on record for a minimum of six (6) months after the effective date of such change. The license is not subject to transfer at any future date without application to, and approval from the Department. The Department may revoke the license of a corporation when the officers are changed and the new officers are unfit to do business as a dealer under R.I. Gen. Laws § 31-5-11.

1. When a licensee retires from business, the licensee must return his or her dealer's license, dealer plates, temporary plates, and loan agreement forms to the Department on or before the date of such retirement or closing.

1. Dealers are required to maintain a book or other system in which shall be recorded a complete description of all vehicles bought and sold, vehicles taken in trade, including the name and address of the previous owner and new owner, date of transaction, make of vehicle, year, type, model and motor number, and a copy of every title signed by the purchaser at the time of sale acknowledging receipt of or the presence of such valid/negotiable title. This book or other system shall be open for inspection by employees of the Department, division of motor vehicles inspectors, police, employees of the Department of Attorney General, or any other proper officers at all times during hours of business.

1. Every dealer must give a bill of sale with each vehicle purchased, and must maintain a copy of the bill of sale as part of the records required above in § 1.7(D) of this Part, above. The bill of sale must be numbered and contain the dealer license number, odometer reading, and must state what warranties are being given. If no warranty is given, this must also be stated on the bill of sale. The bill of sale for all used vehicles must also contain a notice to the buyer which clearly and conspicuously states as follows:

1. Title shall pass from the dealer to the consumer at the time of sale, unless such vehicle is to be registered by said dealer, then a maximum of twenty (20) days from the date of sale shall be allowed. Dealer must obtain a signed receipt from the buyer. The receipt must be kept by the dealer. If the dealer is not able to produce a receipt, it shall be presumed that the title was not given to buyer.

1. Demonstrators: The word "Demonstrator" shall be understood to refer to a motor vehicle which has never been sold to a member of the public; this term describes cars used by automobile dealers or their salespeople and shall be so identified in writing on the bill of sale when sold and/or advertised for the first time at retail.

2. Executives' and Officials' Cars: "Executive" and "Officials" motor vehicles must have been used by executives, personnel of a motor vehicle manufacturer, distributor, or a dealer, and shall be so identified in writing on the bill of sale when sold and/or advertised for the first time at retail.

3. Taxi-Cabs, Police Cars, Leasing Cars, Rental Cars, etc.: Such vehicles shall be so identified in writing on the bill of sale when sold and/or advertised dealer-to-dealer up to and including the first retail buyer. This rule shall apply to salvaged, restored, and other vehicles with extensive damage as may be determined by the Department.

1. The Department will allocate dealer plates in proportion to the amount of sales of licensed dealers. All new dealers shall be issued three (3) plates at the time of licensing. At the end of six (6) months, and from time to time thereafter, such dealer may apply to the Department for additional plates by establishing sales that would indicate its sales over a period of one (1) year. For each one hundred (100) sales per year, a dealer will be issued three (3) plates; this includes the three (3) plates originally issued. Any dealer engaging in the unconscionable practice of loaning or leasing a dealer plate is subject to immediate revocation of license. Dealer plates used by unauthorized persons shall be immediately seized by the Department or other appropriate law enforcement agency and the dealer to whom the plates belong will be subject to immediate revocation of license. Every year, upon renewal of a dealer's license, the Department shall review the prior sales of the dealership to determine whether or not the dealer is entitled to the number of plates already issued. In the event that the dealer's sales no longer qualify the dealer for the number of plates already issued to it, the Department shall have the authority to request a hearing before the Board at which time the dealer will be required to present all bills of sale from the prior year. A dealer must report all lost or stolen dealer plates to the Department. Any licensee who wished to replace a lost or stolen dealer plate must appear in person with a copy of a police report at the Department and execute an affidavit required by the Department. Any plate reported lost or stolen cannot be used upon being found or returned to the dealer. Dealers who desire additional dealer plates must apply, in writing, to the Department stating the amount and reason(s) for such a request, and in addition, must complete the form(s) required by the Department, subject to Department approval.

1. Whenever a licensee wishes to change the name of their licensed dealership, a licensee may apply to do so on whatever form(s) the Department requires, providing the owner, partners, or corporate officers on record, remain on record under the new dealership name. A new license certificate shall be issued upon approval of such change in dealership name, pursuant to Rhode Island Gen. Laws §31-5-8, as amended. It shall be clearly understood that whether or not the new dealership name is that of a corporation, the licensee shall remain responsible for any prior happenings under that dealer license number.

1. In the event a dealer provides the DMV with a check that is returned for insufficient funds, a fee of thirty-five dollars ($35.00) will be charged in addition to interest on the original amount of the check. Interest shall be in the amount of one percent (1%) per month. Failure to make good on a returned check, including paying all applicable fees and interest, may result in suspension or revocation of the dealer's license or imposition of a fine.